ALLIANCE ALL-ASIA INVESTMENT FUND
ANNUAL REPORT
OCTOBER 31, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
November 17, 1997
Dear Shareholder:
As you know, emerging markets have been very volatile during recent months. In
Southeast Asia, the near-term outlook appears bleak. The unfolding adjustments
for these countries involve volatile currencies, numerous bankruptcies,
banking-sector consolidation and slower growth.
Financial markets in this region are likely to remain under pressure as policy
makers grapple with appropriate responses to the economic crisis. The
International Monetary Fund's decision to step in and provide funds to shore up
the shaky Thai and Indonesian financial sectors should eventually help to
provide needed stability to this region. There will also be greater emphasis on
preventing abuse of power by politicians to alter the rules of investing in the
markets.
Long term, we are optimistic about the investment value in this region since
favorable fundamentals are still in place in a number of countries, and we will
be monitoring developments for opportunities in the upcoming periods.
INVESTMENT RESULTS
TOTAL RETURNS FOR THE
PERIODS ENDED OCTOBER 31, 1997
6 MONTHS 12 MONTHS
--------- ---------
ALLIANCE ALL-ASIA INVESTMENT FUND
Class A -25.12% -29.61%
Class B -25.43 -30.09
Class C -25.40 -30.06
MORGAN STANLEY PACIFIC INDEX -10.20 -19.53
LIPPER PACIFIC REGION FUNDS AVERAGE -17.19 -18.52
THE MORGAN STANLEY INDEX IS UNMANAGED. TOTAL RETURNS FOR ADVISOR CLASS
SHARES WILL DIFFER DUE TO DIFFERENT EXPENSES.
In the table at left, your Fund's performance is shown. For comparison, the
performance of the overall stock markets of the Far East, represented by the
unmanaged Morgan Stanley Pacific Index, is shown, along with performance for
the Lipper Pacific Region Funds Average. The Lipper peer group average reflects
performance of 33 funds with investment objectives similar to that of the
All-Asia Investment Fund.
Your Fund underperformed both benchmarks, largely due to an overweight position
in Korea and the decline of Asian currencies.
ASIA - THE SUMMER OF DISCONTENT
Virtually every Asian market was down during the third quarter of 1997, with
the exception of Pakistan and China which were up 18.7% and 0.4%, respectively,
in U.S. dollar terms. Indonesia, Malaysia, and the Philippines declined in
excess of 40% while Thailand was down 22.7%, India was down 7.8%, and Taiwan
was down 8.3% in U.S. dollar terms.
The attack on the Thai baht that began in July and resulted in the free float
of the currency, has now led to the flotation of the Indonesian rupiah, and
greater flexibility in the movements of the Malaysian ringgit and the
Philippine peso. What began as a balance-of-payments problem in Thailand has
now become a major economic crisis in the Association of Southeast Asian
Nations (ASEAN) region. Our economists see a sharp slowdown in economic growth
throughout the ASEAN countries as the recapitalization of the financial sector
and uncertainty regarding interest and exchange rates will reduce domestic
demand.
OUTLOOK AND STRATEGY
We see Indonesia as the first country to come out of the crisis given the sound
financial policies that are being adopted. However, even here there should be
little upside to growth given the limited credit availability due to the poor
quality of the banking system. The Philippines should also see a recovery once
the cyclical impact of sharply higher interest rates to deal with a weak
currency has been absorbed.
1
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
We continue to have exposure to the Indonesian and Philippine markets. Many of
the stocks that we hold in these countries have high quality balance sheets
and, in several cases, benefit from higher interest rates and/or a weaker
currency.
We participated in the initial public offering of Gulf Indonesia, a company
with experienced management and strong growth potential. We believe earnings
should grow at a compound rate of 58% and cash flows at 49% over the next four
years. Historical track record of exploration, if replicated, could result in
oil reserves jumping over 300% in the next year or so. The company is trading
at about 6 times year 2000 cash flow, justifiable given the excellent growth
profile.
The lack of political will to tackle major problems that Thailand faces is
likely to accentuate problems in the financial sector and the real economy.
Malaysia continues to have a lax monetary policy and this is likely to result
in the country being unable to turn around its trade account. The country is
highly leveraged and any shocks to the economy should have a significant impact
in terms of slowing growth. The poor policy response in both these countries,
and the ill-advised intervention in market practices in Malaysia, make us
extremely concerned about the prospects for companies in these markets.
The proposed prohibition of margin calls by banks and securities companies, as
well as other arbitrary actions on the part of the Malaysian government, take
away transparency and free markets in Malaysia. While selling stocks when
prices have dropped already is painful, the assumptions that we made in
purchasing our Malaysian holdings are no longer valid and stocks are largely
unattractive as a result. We have sold a significant portion of the Malaysian
exposure in the portfolio.
ACTIVITY IN CHINA
We see little impact from the crisis on China, and anticipate adding to our
exposure in the country. We participated in an initial public offering by
Zhejiang Southeast Electric Power from China. The company owns existing coal
fired capacity in the Zhejiang province which will increase substantially in
1998. The company benefits from a favorable pricing structure, a shortage of
power capacity in Zhejiang province, and acquisitions that should be additive
to earnings. Even on our conservative numbers, the company appears poised to
record strong earnings growth through 1999 and the stock was priced at a
considerable discount to comparable companies such as Huaneng Power and Datang
Power. The stock looks cheap on a regional context as well.
In August, we purchased shares in an initial public offering by China Southern
Air which has over 80% of its business coming from the domestic economy in
China. The company is likely to grow by 10-15% a year, and their cost base is
much lower than international carriers, as it is a very young business. The
stock is also cheaper than the other Chinese listed airline, China Eastern.
As always, we thank you for your continued interest and investment in the
Alliance All-Asia Investment Fund. We look forward to reporting further
developments in the Asian market in the new year.
Sincerely,
John D. Carifa
Chairman and President
A. Rama Krishna
Senior Vice President
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
Alliance All-Asia Investment Fund seeks long-term capital appreciation. The
Fund invests principally in a non-diversified portfolio of equity securities
issued by companies based in Asia and the Pacific region.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF OCTOBER 31, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -29.61% -32.60%
Since Inception* -8.01% -9.35%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -30.09% -32.81%
Since Inception* -8.63% -9.23%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -30.06% -30.74%
Since Inception* -8.59% -8.59%
The average annual total returns reflect reinvestment of dividends and/or
capital gains distributions in additional shares with and without the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total return for Advisor Class shares will differ due to
different expenses associated with that class.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
* Inception:11/28/94
3
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ALLIANCE ALL-ASIA INVESTMENT FUND
GROWTH OF A $10,000 INVESTMENT
11/30/94* TO 10/31/97
$11,000
$10,000
$9,000
$8,000
$7,000
11/30/94 10/31/95 10/31/96 10/31/97
LIPPER PACIFIC REGION FUNDS AVERAGE: $8,444
MSCI PACIFIC INDEX: $7,847
ALL-ASIA INVESTMENT FUND CLASS A: $7,499
This chart illustrates the total value of an assumed $10,000 investment in
Alliance All-Asia Investment Fund Class A shares (from 11/30/94 to 10/31/97) as
compared to the performance of appropriate broad-based indices. The chart
reflects the deduction of the maximum 4.25% sales charge from the initial
$10,000 investment in the Fund and assumes the reinvestment of dividends and
capital gains. Performance for Class B, Class C and Advisor Class shares will
vary from the results shown above due to differences in expenses charged to
those classes. Past performance is not indicative of future results, and is not
representative of future gain or loss in capital value or dividend income.
The Morgan Stanley Capital International Pacific Index is unmanaged. The
broad-based MSCI Pacific Index is a common measure of overall stock market
activity in the Far East.
The Lipper Pacific Region Funds Average reflects performance of 33 funds. These
funds have generally similar investment objectives to Alliance All-Asia
Investment Fund, although the investment policies of some funds included in the
average may vary.
When comparing Alliance All-Asia Investment Fund to the index and average shown
above, you should note that no charges or expenses are reflected in the
performance of the index. Lipper results include fees and expenses.
All-Asia Investment Fund
MSCIPacific Index
Lipper Pacific Regions Funds Average
* Month-end nearest to Fund's inception date of 11/28/94.
4
TEN LARGEST HOLDINGS
OCTOBER 31, 1997 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
PT Indostat--Provides international
telecommunication services $ 724,601 3.5%
S.K. Telecom Co., Ltd. (ADR)--Provides local
telecommunication services 640,750 3.1
HSBC Holdings, Plc.--A holding company whose
subsidiaries are involved with international
banking and financial services 620,675 3.0
Dickson Concepts, Ltd.--A holding company
whose subsidiaries are involved in
wholesaling and retailing 613,755 3.0
TDK Corp.--Manufactures magnetic tapes
and floppy discs 497,342 2.4
Philippine Long Distance Telephone--Provides
domestic and international long distance
and cellular telephone service 495,050 2.4
Honda Motor Co.--A company who develops,
manufactures, distributes, and finances
motorcycles, automobiles and power products 470,930 2.3
Yamanouchi Pharmaceutical--Manufactures and
markets a variety of pharmaceutical products 467,110 2.3
Nintendo Co.--Manufactures and markets video
games and related products 466,445 2.3
Taisho Pharmaceutical--Produces and sells
pharmaceutical products, agrochemicals,
and cosmetics 460,465 2.3
$5,457,123 26.6%
INDUSTRY DIVERSIFICATION
OCTOBER 31, 1997
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 1,171,843 5.7%
Capital Goods 269,045 1.3
Consumer Manufacturing 1,329,386 6.5
Consumer Services 2,298,634 11.2
Consumer Staples 1,106,421 5.4
Energy 700,413 3.4
Finance 2,881,710 14.0
Healthcare 1,184,801 5.8
Multi-Industry 478,679 2.3
Technology 2,145,427 10.4
Transportation 427,168 2.1
Utilities 3,036,281 14.8
Total Investments* 17,029,808 82.9
Cash and receivables, net of liabilities 3,522,885 17.1
Net Assets $20,552,693 100.0%
* Excludes short-term obligations.
5
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-82.8%
AUSTRALIA-7.9%
Coca-Cola Amatil, Ltd. 45,739 $ 344,176
Goldfields, Ltd. 4,176 3,436
Normandy Mining, Ltd. 291,195 317,413
Qantas Airways, Ltd. 124,161 222,656
Tab Corp Holdings, Ltd. 59,750 273,965
WMC, Ltd. 62,963 223,608
Woolworths, Ltd. 71,680 231,377
------------
1,616,631
CHINA-2.2%
China Southern Air Co., Ltd. (a) 252,000 113,264
Zhejiang Southeast Electric
Power Co., Ltd. (GDR) (a)(b) 21,000 349,125
------------
462,389
HONG KONG-13.5%
Cheung Kong Holdings, Ltd. 55,000 384,143
Dickson Concepts, Ltd. 285,000 613,755
First Pacific Co. 450,355 285,422
Guangshen Railway (ADR) 27,000 394,875
HSBC Holdings, Plc. 27,500 620,675
Smartone Telecom Holdings, Ltd. (a) 12,000 26,386
Sun Hung Kai Properties, Ltd. 26,000 191,683
Television Broadcasting, Ltd. 92,000 255,837
------------
2,772,776
INDIA-6.5%
Hindustan Petroleum 31,300 410,823
Industrial Credit & Inv. (GDR) (b) 30,600 454,410
State Bank of India (GDR) (b) 11,500 211,600
Videsh Sanchar Nigam, Ltd. 8,900 207,944
(GDR) (b) 3,700 51,060
------------
1,335,837
INDONESIA-5.9%
Gulf Indonesia Resources, Ltd. (a) 13,790 289,590
PT Indosat 321,500 724,601
PT Semen Cibinong 105,000 13,835
PT Semen Gresik 191,500 185,922
------------
1,213,948
JAPAN-34.5%
Advantest Corp. (c) 4,700 388,414
Bank of Tokyo-Mitsubishi 25,200 328,605
Bridgestone Corp. (c) 20,000 431,894
Canon, Inc. 6,000 145,515
Dai Nippon Printing Co., Ltd. 4,000 79,734
Daito Trust Construction Co., Ltd. 16,900 150,191
Fuji Heavy Industries (c) 60,000 238,704
Fuji Photo Film (c) 1,000 36,213
Fujitsu, Ltd. (c) 30,000 328,904
Honda Motor Co. (c) 14,000 470,930
Hoya Corp. (c) 9,000 312,458
Japan Tobacco, Inc. 31 254,128
Kokuyo 3,000 70,764
Mitsui Marine & Fire Insurance Co. 30,000 176,412
Nintendo Co. (c) 5,400 466,445
Nippon Express Co., Ltd. 6,000 32,292
Nippon Steel Co. 13,000 26,777
Nisshin Steel Co., Ltd. 25,000 42,151
Rohm Co. (c) 4,000 395,349
Santen Pharmaceutical Co. (c) 13,000 229,983
Shimano, Inc. 3,000 61,047
Shiseido Co., Ltd. 11,000 149,834
Sony Corp. (c) 5,000 414,867
Sumitomo Electric Industries 9,000 118,854
Sumitomo Marine & Fire Insurance Co. 6,000 39,967
Sumitomo Realty & Development 20,000 146,013
Taisho Pharmaceutical 18,000 460,465
6
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Takeda Chemical Industries 1,000 $ 27,243
TDK Corp. 6,000 497,342
Tokai Bank 5,000 29,153
Yakult Honsha 3,000 24,892
Yamanouchi Pharmaceutical 19,000 467,110
Yamatake Honeywell 4,000 48,173
------------
7,090,823
MALAYSIA-0.2%
Malakoff Berhad 16,180 38,830
NEW ZEALAND-1.6%
Air New Zealand, Ltd. Cl. B 2,545 5,388
Lion Nathan, Ltd. 138,000 333,392
------------
338,780
PHILIPPINES-5.4%
Alson's Cement Corp. 244,500 11,066
Belle Corp. (a) 1,682,000 152,260
International Container Terminal
Svcs., Inc. (a) 19,687 3,898
Manila Electric Co.
Series B 101,400 309,793
Philippine Commercial International Bank 39,000 146,733
Philippine Long Distance Telephone 20,000 495,050
------------
1,118,800
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
SOUTH KOREA-5.1%
Korea Electric Power (ADR) 33,000 $ 270,187
Pohang Iron & Steel Co. (ADR) 8,000 130,000
S.K. Telecom Co., Ltd. (ADR) (a) 116,500 640,750
------------
1,040,937
Total Common Stocks
(cost $21,921,471) 17,029,751
WARRANTS-0.0%
HONG KONG-0.0%
Hysan Development Wts. 4/30/98 (a) 550 19
PHILIPPINES-0.0%
Belle Corp. Wts. 9/11/00 (a) 336,400 38
Total Warrants (cost $0) 57
TIME DEPOSIT-15.6%
UNITED STATES-15.6%
Dresdner Bank
5.65% 11/03/97
(cost $3,200,000) $3,200 3,200,000
TOTAL INVESTMENTS-98.4%
(cost $25,121,471) 20,229,808
Other assets less liabilities-1.6% 322,885
NET ASSETS-100% $ 20,552,693
(a) Non-income producing security.
(b) Securities are exempt from registration under rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31, 1997,
these securities amounted to $1,066,195 or 5.2% of net assets.
(c) Securities, or a portion thereof, with an aggregate market value of
$3,714,161 have been segregated to collateralize forward exchange currency
contracts.
Glossary of Terms:
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $25,121,471) $ 20,229,808
Cash, at value (cost $53,804) 53,038
Receivable for capital stock sold 448,429
Deferred organization expenses 82,846
Receivable for investment securities sold 48,180
Dividends and interest receivable 31,663
Total assets 20,893,964
LIABILITIES
Payable for capital stock redeemed 176,072
Distribution fee payable 14,703
Advisory fee payable 13,050
Unrealized depreciation of forward exchange
currency contracts 6,800
Accrued expenses 130,646
Total liabilities 341,271
NET ASSETS $ 20,552,693
COMPOSITION OF NET ASSETS
Capital stock, at par $ 2,760
Additional paid-in capital 30,453,625
Undistributed net investment income 9,051
Accumulated net realized loss on investments and
foreign currency transactions (5,013,649)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (4,899,094)
$ 20,552,693
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($5,916,072/
784,510 shares of capital stock issued and outstanding) $7.54
Sales charge--4.25% of public offering price .33
Maximum offering price $7.87
CLASS B SHARES
Net asset value and offering price per share ($11,439,303/
1,547,257 shares of capital stock issued and outstanding) $7.39
CLASS C SHARES
Net asset value and offering price per share ($1,859,258/
251,298 shares of capital stock issued and outstanding) $7.40
ADVISOR CLASS SHARES
Net asset value, redemption, and offering price per share
($1,338,060/177,010 shares of capital stock issued
and outstanding) $7.56
See notes to financial statements.
8
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes
withheld of $54,656) $ 451,266
Interest 60,835 $ 512,101
EXPENSES
Advisory fee 343,746
Distribution fee - Class A 30,206
Distribution fee - Class B 198,787
Distribution fee - Class C 30,062
Custodian 278,666
Transfer agency 112,765
Audit and legal 112,320
Registration 93,345
Amortization of organization expenses 41,409
Printing 37,552
Directors' fees 37,000
Administrative 32,908
Miscellaneous 37,213
Total expenses 1,385,979
Less expenses waived by the
Adviser (see Note B) (42,986)
Net expenses 1,342,993
Net investment loss (830,892)
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investment transactions (4,958,809)
Net realized loss on foreign
currency transactions (215,646)
Net change in unrealized depreciation of:
Investments (3,025,224)
Foreign currency denominated assets and liabilities (6,572)
Net loss on investments and foreign
currency transactions (8,206,251)
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (9,037,143)
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (830,892) $ (646,380)
Net realized gain (loss) on investments and
foreign currency transactions (5,174,455) 1,777,108
Net change in unrealized depreciation of
investments and foreign currency
denominated assets and liabilities (3,031,796) (1,889,917)
Net decrease in net assets from operations (9,037,143) (759,189)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (362,976) (21,900)
Class B (710,027) (46,814)
Class C (103,481) (5,445)
Advisor Class (5,766) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) (9,550,773) 32,518,713
Total increase (decrease) (19,770,166) 31,685,365
NET ASSETS
Beginning of year 40,322,859 8,637,494
End of year (including undistributed net
investment income of $9,051 at
October 31, 1997) $ 20,552,693 $ 40,322,859
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance All-Asia Investment Fund, Inc. (the "Fund"), was organized as a
Maryland corporation on September 21, 1994 and is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company. The Fund offers Class A, Class B, Class C and Advisor Class
shares. Class A shares are sold with an initial sales charge of up to 4.25%.
With respect to purchases of $1,000,000 or more, Class A shares redeemed within
one year of purchase will be subject to a contingent deferred sales charge of
1%. Class B shares are sold with a contingent deferred sales charge which
declines from 4.00% to zero depending on the period of time the shares are
held. Class B shares will automatically convert to Class A shares eight years
after the end of the calendar month of purchase. Class C shares are subject to
a contingent deferred sales charge of 1.00% on redemptions made within the
first year after purchase. Advisor Class shares are sold without an initial or
contingent deferred sales charge and are not subject to ongoing distribution
expenses. Advisor Class shares are offered solely to investors participating in
fee-based programs. All four classes of shares have identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. The following is a summary of significant accounting
policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange for which market
quotations are readily available are valued at the last quoted sales price on
that exchange. Securities listed or traded on certain foreign exchanges whose
operations are similar to the U.S. over-the-counter market are valued at the
price within the limits of the latest available current bid and asked price
deemed best to reflect fair value. Securities which mature in 60 days or less
are valued at amortized cost, which approximates market value, unless this
method does not represent fair value. Securities for which market quotations
are not readily available and restricted securities are valued in good faith at
fair value using methods determined by the Board of Directors.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $201,500 have been deferred and are
being amortized on a straight-line basis through October, 1999.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or accrued.
Net realized loss on foreign currency transactions represents foreign exchange
gains and losses from sales of investments and forward exchange currency
contracts, the holding of foreign currencies, currency gains or losses realized
between the trade and settlement dates on foreign security transactions, and
the difference between the amounts of dividends, interest and foreign taxes
receivable recorded on the Fund's books and the U.S. dollar equivalent amounts
actually received or paid. Net unrealized currency gains and losses from
valuing foreign currency denominated assets and liabilities at period end
exchange rates are reflected as a component of net change in unrealized
appreciation (depreciation) of investments and foreign currency denominated
assets and liabilities.
4. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the shares of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A shares and the Advisor Class shares have no distribution fees.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
6. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require such
reclassification. During the current fiscal year, permanent differences,
primarily due to foreign currency losses, resulted in a net decrease in
additional paid-in capital and corresponding decreases in accumulated net
investment loss and accumulated net realized loss on investments and foreign
currency transactions. This reclassification had no effect on net assets.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays Alliance Capital
Management L.P. ("the Adviser") an advisory fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly. At
October 31, 1997 the Adviser has voluntarily agreed to waive a portion of its
advisory fee. Such waiver amounted to $42,986 for the year ended October 31,
1997.
Under the terms of an Administrative Agreement, the Fund pays Alliance Capital
Management L.P. (the "Administrator") a monthly fee equal to the annualized
rate of .15 of 1% of the Fund's average daily net assets. Such compensation
amounted to $32,908 for the year ended October 31, 1997.
The Administrator provides administrative functions to the Fund as well as
other clerical services. The Administrator also prepares financial and
regulatory reports for the Fund.
The Fund compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of
the Adviser) under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $75,975 for the year ended October 31, 1997.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $2,570 from the sale of Class A shares and $73,693
and $1,152 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B, and Class C shares, respectively, for the year ended
October 31, 1997.
Brokerage commissions paid on investment transactions for the year ended
October 31, 1997 amounted to $294,710, of which $7,572 was paid to a broker
utilizing the services of an affiliate of the Adviser.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays a distribution fee to the Distributor at an annual
rate of up to .30 of 1% of the Fund's average daily net assets attributable to
Class A shares and 1% of the average daily net assets attributable to both
Class B and Class C shares. There is no distribution fee on the Advisor Class
shares. The fees are accrued daily and paid monthly. The Agreement provides
that the Distributor will use such payments in their entirety for distribution
assistance and promotional activities. The Distributor has incurred expenses in
excess of the distribution costs reimbursed by the Fund in the amounts of
$1,690,408 and $162,319 for Class B and Class C shares respectively. Such costs
may be recovered from the Fund in future periods so long as the Agreement is in
effect. In
12
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs, incurred by the Distributor, beyond the
current fiscal year for Class A shares. The Agreement also provides that the
Adviser may use its own resources to finance the distribution of the Fund's
shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term and U.S.
government obligations) aggregated $22,689,736 and $37,806,741, respectively,
for the year ended October 31, 1997. There were no purchases or sales of U.S.
government or government agency obligations for the year ended October 31, 1997.
At October 31, 1997, the cost of investments for federal income tax purposes
was $25,127,096. Accordingly, gross unrealized appreciation of investments was
$707,207 and gross unrealized depreciation of investments was $5,593,245
resulting in net unrealized depreciation of $4,886,038 (excluding foreign
currency transactions).
FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio
holdings, to hedge certain firm purchase and sale commitments denominated in
foreign currencies and for investment purposes. A forward exchange currency
contract is a commitment to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from the difference
between the original contracts and the closing of such contracts is included in
net realized gains or losses on foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value equal
to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges. Risks may
arise from the potential inability of a counterparty to meet the terms of a
contract and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar. The face or contract amount, in U.S. dollars, as
reflected in the following table, reflects the total exposure the Fund has in
that particular currency contract.
At October 31, 1997, the Fund had outstanding forward exchange currency
contracts, as follows:
U.S. $
CONTRACT VALUE ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
(000) DATE VALUE DEPRECIATION
------------ ------------ ------------ ------------
FORWARD EXCHANGE
CURRENCY SALE
CONTRACTS
Japanese Yen,
expiring 2/4/98 437,655 $3,678,422 $3,685,222 $ (6,800)
NOTE E: CAPITAL STOCK
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
13
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1997 1996
------------ ------------ -------------- --------------
CLASS A
Shares sold 774,765 1,333,932 $ 7,493,418 $ 15,265,510
Shares issued in
reinvestment of
distributions 29,448 1,703 321,278 18,287
Shares converted
from Class B 12,185 19,434 128,940 233,415
Shares redeemed (1,145,077) (516,471) (11,393,804) (5,861,457)
Net increase
(decrease) (328,679) 838,598 $ (3,450,168) $ 9,655,755
CLASS B
Shares sold 1,070,451 2,645,348 $ 10,641,169 $ 30,130,477
Shares issued in
reinvestment of
distributions 42,591 3,362 458,704 35,910
Shares converted
to Class A (12,388) (19,621) (128,940) (233,415)
Shares redeemed (1,735,240) (944,132) (17,475,408) (10,813,924)
Net increase
(decrease) (634,586) 1,684,957 $ (6,504,475) $ 19,119,048
CLASS C
Shares sold 182,241 679,693 $ 1,850,152 $ 7,727,714
Shares issued in
reinvestment of
distributions 8,253 481 88,889 5,146
Shares redeemed (326,841) (349,835) (3,438,732) (4,016,334)
Net increase
(decrease) (136,347) 330,339 $ (1,499,691) $ 3,716,526
OCT. 2, 1996* OCT. 2, 1996*
TO TO
OCT. 31, 1996 OCT. 31, 1996
------------ --------------
ADVISOR CLASS
Shares sold 265,011 2,474 $ 2,733,346 $ 27,384
Shares issued in
reinvestment of
distributions 529 -0- 5,766 -0-
Shares redeemed (91,004) -0- (835,551) -0-
Net increase 174,536 2,474 $ 1,903,561 $ 27,384
NOTE F: CONCENTRATION OF RISK
The securities markets of many Asian countries are relatively small, with the
majority of market capitalization and trading volume concentrated in a limited
number of companies representing a small number of industries. Consequently,
the Fund's investment portfolio may experience greater price volatility and
significantly lower liquidity than a portfolio invested in equity securities of
U.S. companies. These markets may be subject to greater influence by adverse
events generally affecting the market, and by large investors trading
significant blocks of securities, than is usual in the United States.
* Commencement of distribution
14
FINANCIAL HIGHLIGHTS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------
YEAR ENDED OCT. 31, NOV. 28,1994(A)
----------------------- TO
1997 1996 OCT. 31, 1995
----------- ---------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period $11.04 $10.45 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.21) (.21) (.19)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (2.95) .88 .64
Net increase (decrease) in net asset
value from operations (3.16) .67 .45
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions (.34) (.08) -0-
Net asset value, end of period $ 7.54 $11.04 $10.45
TOTAL RETURN
Total investment return based on
net asset value (d) (29.61)% 6.43% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $5,916 $12,284 $2,870
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.45% 3.37% 4.42%(e)
Expenses, before waivers/reimbursements 3.57% 3.61% 10.57%(e)
Net investment loss, net of
waivers/reimbursements (1.97)% (1.75)% (1.87)%(e)
Portfolio turnover rate 70% 66% 90%
Average commission rate (f) $.0248 $.0280 --
</TABLE>
See footnote summary on page 18.
15
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------
YEAR ENDED OCT. 31, NOV. 28,1994(A)
----------------------- TO
1997 1996 OCT. 31, 1995
----------- ---------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period $10.90 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.28) (.28) (.25)
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (2.89) .85 .66
Net increase (decrease) in net asset
value from operations (3.17) .57 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions (.34) (.08) -0-
Net asset value, end of period $ 7.39 $10.90 $10.41
TOTAL RETURN
Total investment return based on
net asset value (d) (30.09)% 5.49% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $11,439 $23,784 $5,170
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.15% 4.07% 5.20%(e)
Expenses, before waivers/reimbursements 4.27% 4.33% 11.32%(e)
Net investment loss, net of
waivers/reimbursements (2.67)% (2.44)% (2.64)%(e)
Portfolio turnover rate 70% 66% 90%
Average commission rate (f) $.0248 $.0280 --
</TABLE>
See footnote summary on page 18.
16
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------
YEAR ENDED OCT. 31, NOV. 28,1994(A)
----------------------- TO
1997 1996 OCT. 31, 1995
----------- ---------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period $10.91 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.27) (.28) (.35)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (2.90) .86 .76
Net increase (decrease) in net asset
value from operations (3.17) .58 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions (.34) (.08) -0-
Net asset value, end of period $ 7.40 $10.91 $10.41
TOTAL RETURN
Total investment return based on
net asset value (d) (30.06)% 5.59% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,859 $4,228 $597
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.15% 4.07% 5.84%(e)
Expenses, before waivers/reimbursements 4.27% 4.30% 11.38%(e)
Net investment loss, net of
waivers/reimbursements (2.66)% (2.42)% (3.41)%(e)
Portfolio turnover rate 70% 66% 90%
Average commission rate (f) $.0248 $.0280 --
</TABLE>
See footnote summary on page 18.
17
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
-------------------------------
YEAR ENDED OCT. 2, 1996(G)
OCT. 31, TO
1997 OCT. 31, 1996
-------------- --------------
Net asset value, beginning of period $11.04 $11.65
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.15) -0-
Net realized and unrealized loss
on investments (2.99) (.61)
Net decrease in net asset value
from operations (3.14) (.61)
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions (.34) -0-
Net asset value, end of period $ 7.56 $11.04
TOTAL RETURN
Total investment return based on
net asset value (d) (29.42)% (5.24)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,338 $27
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.21% 4.97%(e)
Expenses, before waivers/reimbursements 3.43% 5.54%(e)
Net investment income (loss), net of
waivers/reimbursements (1.51)% 1.63%(e)
Portfolio turnover rate 70% 66%
Average commission rate (f) $.0248 $.0280
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Net of expenses waived by the Adviser.
(d) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total investment return calculated for a period of less than one year
is not annualized.
(e) Annualized.
(f) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on which
commissions are charged. This amount includes commissions paid to foreign
brokers which may materially affect the rate shown. Amounts paid in foreign
currencies have been converted into US dollars using the prevailing exchange
rate on the date of the transaction.
(g) Commencement of distribution.
18
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS ALLIANCE ALL-ASIA INVESTMENT FUND,
INC.
We have audited the accompanying statement of assets and liabilities of
Alliance All-Asia Investment Fund, Inc. (the "Fund"), including the portfolio
of investments, as of October 31, 1997, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance All-Asia Investment Fund, Inc. at October 31, 1997, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated periods, in conformity with generally accepted accounting
principles.
New York, New York
December 10, 1997
19
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
W.H. HENDERSON (1)
STIG HOST (1)
RICHARD M. LILLY (1)
ALAN STOGA (1)
OFFICERS
A. RAMA KRISHNA, SENIOR VICE PRESIDENT
KARAN TREHAN, SENIOR VICE PRESIDENT
THOMAS J. BARDONG, VICE PRESIDENT
DANIEL V. PANKER, VICE PRESIDENT
FRANCIS P. REEVES, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
DOMENICK PUGLIESE, ASSISTANT SECRETARY
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
PHYLLIS CLARKE, ASSISTANT CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY10019
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800)-221-5672
(1) Members of the Audit Committee.
20
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
21
ALLIANCE ALL-ASIA INVESTMENT FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
AAIAR
